Tech shares had opened higher, buoyed by upbeat earnings from Palantir Technologies and Teradyne. Palantir rallied more than 5 percent after projecting 2026 revenue well above analyst estimates, while semiconductor-testing specialist Teradyne jumped over 11 percent on stronger-than-expected first-quarter guidance. Those gains proved insufficient to offset the broad pullback that followed the Anthropic news.
Mining companies provided one of the few bright spots. Gold prices climbed more than 6 percent and silver surged over 8 percent, sparking a rebound in precious-metals producers after sharp losses in the two prior sessions. The rally in bullion underscored a defensive shift as investors sought perceived havens amid the technology-led sell-off.
Cryptocurrency-linked equities moved in the opposite direction. Bitcoin fell more than 3 percent to its lowest level in roughly 15 months, extending a downturn that deepened following the broader risk-off tone in financial markets. Shares of firms with significant digital-asset exposure slumped in tandem with the world’s largest cryptocurrency.
Macroeconomic commentary from Federal Reserve officials offered little relief. Richmond Fed President Tom Barkin said the U.S. outlook is improving as uncertainty diminishes, but he cautioned that hiring remains concentrated in a limited number of industries and that inflation is still running above the central bank’s target. His remarks reinforced expectations that monetary policy will stay restrictive until price pressures cool further. For background on Barkin’s policy stance, see the Federal Reserve’s official biography.
Political developments in Washington added to investor unease. A partial U.S. government shutdown entered its fourth day after funding lapsed over the weekend. Lawmakers were awaiting a House vote on a bipartisan spending deal negotiated by President Trump and congressional Democrats. While the funding gap could be brief if the House acts swiftly, the stalemate has already disrupted economic data releases: the Bureau of Labor Statistics postponed Tuesday’s Job Openings and Labor Turnover Survey and Friday’s January nonfarm-payrolls report.
Market participants also monitored corporate headlines outside the day’s main themes. Reports that Nvidia may reconsider a previously discussed $100 billion investment in OpenAI raised questions about the chipmaker’s long-term strategy in the AI ecosystem. Separately, commentary on silver futures highlighted a technical demand zone that some analysts view as a potential buying opportunity following recent price swings. Interest in Rocket Lab stock options grew as traders weighed perceived sentiment mismatches ahead of upcoming catalysts.
Sector rotation was evident beneath the major averages. Energy, industrials and consumer discretionary names generally outperformed as funds flowed out of high-growth technology issues. Traders cited profit-taking, stretched valuations and heightened uncertainty over AI’s disruptive potential as reasons for the shift.
Despite Tuesday’s losses, the Dow remained within reach of its latest all-time high, underscoring a divergence in performance between cyclical stalwarts and fast-growing technology leaders. Analysts said the gap could persist if investors continue to favor companies with more predictable earnings streams in an environment marked by tight monetary policy and policy-related headline risk.
Trading volumes were slightly above the recent average, signaling strong conviction among sellers in the afternoon downturn. Short-term volatility gauges ticked higher but stayed below levels associated with pronounced stress, suggesting that most participants view the pullback as a recalibration rather than the start of a broader correction.
Looking ahead, attention turns to Washington for progress on the spending bill and to upcoming remarks from other Federal Reserve officials. Investors will also watch corporate earnings from consumer-focused companies for clues about the health of household spending, a key pillar of U.S. growth.
Tuesday’s market action highlighted how quickly sentiment can shift in response to developments in artificial intelligence and government policy. With AI innovations emerging at a rapid pace and fiscal negotiations ongoing, traders expect headline-driven swings to remain a defining feature of early 2026 trading.
Crédito da imagem: Barchart
